Yangtze Telecom recently announced that it has negotiated a $3.25 million private placement led by Sprott Asset Management Inc. of Toronto, Canada and a U.S. Asset Management firm.
This financing is subject to regulatory approval. Terms of the financing were settled after several weeks of discussion and include the issuance of 2,600,000 units at $1.25 per unit. Each unit consists of one common share in the capital of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase an additional share at $1.55 for twelve months from the closing date. A finders fee is payable. The securities to be issued will be subject to a minimum four month hold period from the date of closing.
Yangtze Telecom intends to use the net proceeds from this placement to accelerate the execution of its current business plan, including the expansion of its SMS services in China through its revenue sharing partnerships with China Mobile and China Unicom, and for general corporate purposes.
"We are pleased to have successfully secured our current financing objective ahead of schedule and look forward to a dynamic relationship with our new investment partners," said Emily Chen, President of Yangtze Telecom. "This financing allows us to extend our operations into new regions of China and ensures an expanded menu of services for our growing subscriber base."